Facebook settles suit for $10 million

Facebook will pay $10 million to charity to settle a lawsuit over advertisements that it called sponsored stories.

Facebook will pay $10 million to charity to settle a lawsuit over advertisements that it called sponsored stories.

A Facebook service, started in early 2011, allowed companies to pay to retransmit users' activities to their friends' pages. If a user clicked on the "like" button for a brand, the click might show up as a "sponsored story" on friends' pages.

Some Facebook users had sued, saying that Facebook used their images for commercial activity.

Court documents say a settlement has been reached with Facebook attorney Michael Rhodes confirming the amount to be paid to charity. However, a judge needs to approve the settlement. (With AP inputs)